Agreed-Upon Procedures

Tailored audits for your business needs.

Agreed-Upon Procedures (AUP) are tailored audits that verify specific conditions or compliance needs without offering full opinions.
They provide focused, cost-effective assurance on targeted areas like contracts, regulations, or performance metrics.

WHY IT MATTERS

Businesses may need to confirm the accuracy of specific information or verify compliance with certain agreements or regulations. In these cases, a full audit might be unnecessary and excessive. Agreed-Upon Procedures provide a more targeted solution, helping businesses focus their resources on the areas that matter most. For example, a company seeking external financing may use AUPs to confirm compliance with loan covenants or verify certain financial metrics, providing assurance to lenders without the need for a complete audit. This flexibility allows businesses to address particular concerns without incurring the costs and time associated with a full audit.

WHY IT MATTERS

Failure to verify specific requirements could result in missed compliance issues, potential legal disputes, or financial discrepancies. An agreed-upon procedure helps mitigate this risk by providing the necessary verification of selected areas, ensuring that businesses remain compliant and protected from future issues. Without this service, companies may overlook important details or face unnecessary regulatory scrutiny.

WHAT WE DO

Financial Statement Line Item
Verification

We perform targeted procedures on specific financial statement items like revenue, expenses, receivables, or inventory. This includes reconciling figures to source documents such as invoices and ledgers, helping clients validate key balances without providing an audit opinion.

Compliance with
Contractual or Regulatory Terms

We review compliance with specific clauses in legal agreements, grant conditions, or regulatory requirements. Our procedures include verifying timelines, financial limits, and required documentation, commonly for government grants, joint ventures, or investor covenants.

Internal Control Testing And
Validation

We assess the design and effectiveness of specific internal controls as per client instructions. Our procedures include walkthroughs, control re-performance, and sample testing to identify weaknesses, helping clients enhance their control environment and mitigate risks.

Revenue And Expense
Verification for Specific Projects

We verify project-specific financial data, including revenues and expenses for a defined period, by tracing entries to contracts, invoices, timesheets, or bank statements. This supports grant audits, donor reporting, and project performance evaluations.

Third-Party Confirmation And
Reconciliation Procedures

We obtain direct confirmations from third parties—such as customers, suppliers, or banks—to verify balances and transactions. Our team reconciles these confirmations with client records to detect mismatches, aiding in the validation of receivables, payables, loans, and intercompany accounts.